Global brokerage firm UBS has upgraded Indraprastha Gas Ltd. (IGL) to a ‘Buy’ rating from its previous ‘Sell’ stance, raising the price target to ₹700 from ₹400 per share earlier. The revised price target implies a potential upside of nearly 32% from Monday’s closing levels.

Analysis

Mahanagar Gas stock price today is Rs 1,789.15. Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Mahanagar Gas . 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Mahanagar Gas has a PE ratio of 66which is low and comparatively undervalued .
• Share Price: – The current share price of Mahanagar Gas is Rs1,789.15. One can use valuation calculators of ticker to know if Mahanagar Gas share price is undervalued or overvalued.
• Return on Assets (ROA): – Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Mahanagar Gas has ROA of 45% which is a good sign for future performance. (higher values are always desirable)
• Current ratio: – The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Mahanagar Gas has a Current ratio of 11.
• Return on equity: – ROE measures the ability of a firm to generate profits from its shareholders’ investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Mahanagar Gas has a ROE of 79% .(higher is better)
• Debt to equity ratio: – It is a good metric to check out the capital structure along with its performance. Mahanagar Gas has a Debt to Equity ratio of 0 which means that the company has a low proportion of debt in its capital.
• Sales growth: – Mahanagar Gas has reported revenue growth of –87% which is poor about its growth and performance. 
• Operating Margin: – This will tell you about the operational efficiency of the company. The operating margin of Mahanagar Gas for the current financial year is 51%.
• Dividend Yield: – It tells us how much dividend we will receive about the price of the stock. The current year dividend for Mahanagar Gas is Rs30 and the yield is 68 %.
• Earnings Per Share: – It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Mahanagar Gas is Rs01. The higher the EPS, the better it is for investors. 

The stock opened with a gap with positive news and hence recommended with ATM Call option to catch further momentum.